Friday, 5 April 2013

British weekend gas prices rose on Friday after stored gas reserves plummeted this week as looming production outages are expected to squeeze supplies and the country heads into more abnormally cold weather.

The price of gas for weekend delivery rose 3.50 pence to 81.00 pence per therm on concerns over depleted storage sites.

“If we hear of any other maintenance outages or slightly revised cold weather forecasts, then people get very nervous, very quickly. Prices could jump by a lot,” a UK gas trader said.

“Once we establish a buffer in the stored reserves, then we should start to see prices come off,” he added.